TOTAL FACE GROUP LTD For personal use only · 2016-03-16 · Total Face Group Ltd will not...
Transcript of TOTAL FACE GROUP LTD For personal use only · 2016-03-16 · Total Face Group Ltd will not...
1TFG Investor Presentation March 2016
Total Face Group
Level 4, Bank House
11 – 19 Bank Place
Melbourne 3000
www.totalfacegroup.com.au
TOTAL FACE GROUP LTD
17th March 2016
Australian Securities ExchangeCompany Announcement OfficeStock Exchange Centre20 Bridge Street SYDNEY NSW 2000
Dear Sir/Madam,
Pursuant to Listing Rule 3.1, attached is a presentation to be presented to institutional investors by the Company’s Chief Executive Officer, Mrs Joanne Hannah and Chairman, Paul Fielding.
Yours faithfully,
Liza JueganChief Financial Officer & Company Secretary
-END-
About TFG TFG is Australia’s largest group of premium cosmetic clinics offering Cosmetic Injectable treatments, Skin Solutions and Coolsculpting body fat reduction treatments. With seven clinics in Melbourne and three in Sydney, Total Face Group provides an honest, consistent and highly professional medical approach to facial rejuvenation and body sculpting treatments.Our clinics have been providing clinical excellence for 27 years to men and women in Australia. It is our commitment to education, safety and product choice, which means we are the trusted national provider of cosmetic treatments.
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2TFG Investor Presentation March 2016
Total Face Group LtdInvestor Presentation
March 2016
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3TFG Investor Presentation March 2016
This presentation does not constitute, or form part of, an offer to sell or the solicitation of an offer to subscribe for or buy any
securities, nor the solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issue or transfer of the
securities referred to in this presentation in any jurisdiction in contravention of applicable law. Persons needing advice should
consult their stockbroker, bank manager, solicitor, accountant or other independent financial advisor. Certain statements made
in this presentation are forward-looking statements. These forward looking statements are not historical facts but rather are
based on Total Face Group Ltd’s current expectations, estimates and projections about the industry in which Total Face Group
Ltd operates, and its beliefs and assumptions. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks,”
"estimates,“ “guidance” and similar expressions are intended to identify forward-looking statements. and should be considered
an at-risk statement. Such statements are subject to certain risks and uncertainties, particularly those risks or uncertainties
inherent in the process of developing technology and in the endeavour of building a business around such products and
services.
These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and
other factors, some of which are beyond the control of Total Face Group Ltd, are difficult to predict and could cause actual
results to differ materially from those expressed or forecasted in the forward-looking statements. Total Face Group Ltd
cautions shareholders and prospective shareholders not to place undue reliance on these forward-looking statements, which
reflect the view of Total Face Group Ltd only as of the date of this presentation. The forward-looking statements made in this
presentation relate only to events as of the date on which the statements are made. Total Face Group Ltd will not undertake
any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events,
circumstances or unanticipated events occurring after the date of this presentation except as required by law or by any
appropriate regulatory authority.
DISCLAIMER
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4TFG Investor Presentation March 2016
OVERVIEW
• Corporate overview
• Company overview
• Key metrics
• Financials
• Clinic locations
• Growth strategy
• Industry overview
• 2016 & beyond
• Investment Summary
• Contacts
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5TFG Investor Presentation March 2016
CORPORATE OVERVIEW
Capital Structure Board of Directors
Total Shares on Issue1 74.1m
Joanne Hannah
Managing Director & CEO
Share Price
@ 15.03.16$0.30
Paul Fielding
Executive Chairman
Market Capitalisation $22.4mDr Vilma Di Maria
Non executive Director
Cash2
@ 29.02.16$4.0m
John Conidi
Non executive Director
Borrowings2
@ 29.02.16$1.7m
Enterprise Value $20.2m Top Shareholders
Paul Fielding 17.2%
Mick Catanzariti 7.7%
Australian Executor Trustee 6.4%
Top 20 60.3%
Shareholder Type
Founders / Management / Staff 51.0%
Institutions / Wholesale 39.0%
Retail 10.0%
Notes:1 32.1m (42.9%) of total shares on issue are
escrow ed for up to 2 years from listing2 Unaudited, all borrow ings relate to equipment leases
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6TFG Investor Presentation March 2016
HOW
WHY
GOAL
COMPANY OVERVIEW
to become the most respected,
influential and successful organisation
in the medical aesthetic market
to make people feel good about
themselves and confident in being who
they are
to offer our clients the very best in
aesthetic solutions by excellence in
education, products & technology and
customer service
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7TFG Investor Presentation March 2016
COMPANY OVERVIEW
1988
Heber Davis commenced operations
1993
MCF commenced operations
1996
Skinovate commenced operations
April 2014
TFG holding company formed
Mid 2014
Acquired 3 Melbourne Clinics (including MCF)
Q1 2015
Acquired Skinovate (2 Melbourne Clinics)
Q3 2015
Pre IPO raise $3m
Q4 2015
Acquired Heber Davis in Sydney
Q4 2015
Opened first organic clinic in Melbourne
Corporate timeline
Pre IPO Milestones Post IPO Significant Events
January 2016
Listed on ASX and raised $6m
February 2016
Acquired Face Today (Chatswood, Sydney)
February 2016
Acquired Rejuvenate (Penrith, Sydney)
March 2016
Acquired Lase By The Sea (Frankston, Melb.)
March 2016
Retail Finance Agreement with zipMoney
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8TFG Investor Presentation March 2016
COMPANY OVERVIEW
• TFG operates within the Australian aesthetic industry
and provides non-invasive cosmetic procedures to its
clients
• Incorporated in April 2014 by Joanne Hannah and
Jane Fielding to create a business to provide aesthetic
clients with the very best in treatment outcomes. Their
mission is to create a network of centres dedicated to
clinical excellence predicated on a customer centric
culture
• The company currently operates 11 clinics across
Melbourne & Sydney with 34 clinicians and 12 Doctors
delivering TFG modalities across these locations
• The company’s key competitive advantage and drivers
of customers and revenue are its brand creation,
clinical excellence and medical governance
• The company has significantly grown revenues since
incorporation through acquisition and strong organic
growth
Collins Street Melbourne Clinic
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9TFG Investor Presentation March 2016
COMPANY OVERVIEW
a. Anti Ageing – 60%
• Dermal fillers used by TFG include Juvederm® and Restylane® both are temporary and made from hyaluronic
acid gel
• Anti-wrinkle injections provided are either Botox® or Dysport®
a. Skin Solutions – 21%
• Medical grade skin peels
• Obagi® skin care
• Intense pulsed light (IPL) and laser
• Body Fat Reduction using Coolsculpting® - 19%
• The procedure was developed by Harvard scientists
and is based on the proprietary science of
Cryolipolysis®
• a process demonstrating that when fat cells are
exposed to extreme cold, they die and are eliminated
naturally from the body.
• No needles, no downtime and no surgery
Coolsculpting® Machine Obagi® skin care
Our modality offering
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10TFG Investor Presentation March 2016
COMPANY OVERVIEW
• Strong and loyal customer base
• Reputation for excellence and safety
• Long standing industry participation
• Education and an honest approach
• Financial capacity
• Attracting the best clinicians and therapists in the industry
• Highest quality equipment and consumables available globally
• Highest levels of patient outcomes through excellence in customer service,
products and technology
• Strong industry knowledge and supplier relationships, with some of the world’s
leading pharmaceuticals multinationals…
Competitive advantage
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11TFG Investor Presentation March 2016
KEY METRICSOperating and financial metrics highlight significant opportunity
• Group gross margins (excluding labour) above ~70% across all modalities
• Group Clinic Operating Profit 1HFY16 $0.6m (~20% margin)
• Current seasonally adjusted pro forma clinic operating profit $3.0m (~25% margin)
• Corporate and operating infrastructure largely in place with minimal incremental
fixed costs as revenue footprint continues to gain momentum
• Cash at bank at 29 Feb 2016 of ~$4.0m
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12TFG Investor Presentation March 2016
FINANCIALS – AT THE CLINIC LEVEL
• Clinician utilisation across Melbourne clinics provides further growth opportunity
• Forecast group clinic operating profit to remain at or above 25% based on
current supply contracts
Clinic VIC Clinic NSW Combined Clinic VIC Clinic NSW Total
Revenue 2,121,384 866,979 2,988,363 5,128,185 6,951,656 12,079,841
COGS 532,422 97,958 630,380 1,538,455 2,172,209 3,710,664
Gross profit 1,588,962 769,021 2,357,983 3,589,729 4,779,448 8,369,177
Margin 75% 89% 79% 70% 69% 69%
Direct Clinic Costs
Labour 951,662 524,641 1,476,303 1,940,327 2,325,400 4,265,728
Facilities 227,507 50,565 278,072 472,459 471,516 943,976
1,179,169 575,206 1,754,375 2,412,787 2,796,917 5,209,703
Clinic Profitability 409,793 193,815 603,608 1,176,943 1,982,531 3,159,474
Margin 19% 22% 20% 23% 29% 26%
1HY16 Seasonally Adjusted Pro Forma
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13TFG Investor Presentation March 2016
FINANCIALS – MODALITY SPLIT
• Key focus on driving Coolsculpting modality
• Key focus on driving increased retail sales within Skin Solutions modality
• Increased doctor footprint in Victoria
Injectables CoolsculptingSkin
SolutionsTotal Injectables Coolsculpting
Skin
SolutionsTotal
Revenue 1,859,537 291,611 837,215 2,988,363 7,247,905 2,536,767 2,295,170 12,079,841
62% 10% 28% 100% 60% 21% 19% 100%
COGS 383,506 112,406 134,468 630,380 2,174,371 1,014,707 521,586 3,710,664
Gross profit 1,476,030 179,205 702,747 2,357,983 5,073,533 1,522,060 1,773,584 8,369,177
Margin 79% 61% 84% 79% 70% 60% 77% 69%
Direct Modality Costs
Labour - Clinicians 713,170 21,594 378,161 1,112,925 1,967,634 65,029 1,138,792 3,171,455
Labour - clinic CLO's 226,115 35,459 101,803 363,378 656,563 229,797 207,912 1,094,272
Facilities 173,033 27,135 77,904 278,072 566,385 198,235 179,355 943,976
1,112,318 84,188 557,869 1,754,375 3,190,583 493,061 1,526,059 5,209,703
Modality Profitability 363,713 95,017 144,879 603,608 1,882,950 1,028,999 247,525 3,159,474
Margin 20% 33% 17% 20% 26% 41% 11% 26%
HY16 Seasonally Adjusted Pro Forma
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14TFG Investor Presentation March 2016
FINANCIALS – CORPORATE COSTS
• Heavy focus on marketing
initiatives
• Rolling out national IP network
connecting all clinics on one
architecture
• Insurances across the group
reviewed and aligned
• Depreciation and net interest
substantially relates to
Coolsculpting equipment
supporting Body Fat Reduction
modality
1HFY16 Pro Forma
Labour 388,209 913,165
Marketing 127,486 195,000
ICT Costs 96,028 269,557
Legal and Accounting 71,798 115,349
Insurances 13,472 115,179
Head Office Occupancy 48,507 174,947
Other 122,844 318,308
Total Corporate 868,345 2,101,505
Depreciation 224,738 518,638
Net Interest Expense 73,196 141,615
Total Depreciation & Interest 297,934 660,254
Total 1,166,278 2,761,759 For
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16TFG Investor Presentation March 2016
GROWTH STRATEGYOrganic and Acquisitive
• See significant organic growth through:
• Increased clinician utilisation across Melbourne clinics
• Rollout of Body Fat Reduction across key clinics in NSW
• Marketing initiatives including 360 and i360 campaigns
• Development of online store for Skin Solutions modality
• Continued maturity of TESSA
• A number of acquisitive opportunities continue to present themselves with our
focus remaining on:
• Geographic spread and concentration
• Business model alignment
• Quality of client base and clinical talent
• Expansion of treatments across our modalitiesFor
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17TFG Investor Presentation March 2016
INDUSTRY OVERVIEW
Non-invasive Cosmetic Industry
• In which TFG operates is often included
within the general industry description
of ’Plastic Surgery’
• The industry generates approximately
$1billion in revenues annually, of which
approximately 42% is addressable by
TFG
Competitive environment…
• Cosmetic Injectable products are Schedule 4 medicines as defined by the Therapeutic Goods
Administration (TGA) and their purchase is restricted. This significantly effects the competitive
landscape and ability of new participants to enter the industry
• Highly fragmented, where practitioners typically operate from one location < 10 employees
• Typical operators include:
- operators who rely on high traffic and low pricing in order to drive turnover;
- plastic surgeons and dermatologists seeking diversification;
- owners of beauty, skin care or day spa clinics seeking higher margins general practitioners
supplementing traditional revenue streams
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18TFG Investor Presentation March 2016
INDUSTRY OVERVIEW
Factors driving increased demand for non-invasive procedures include…
• An ageing population
• Australian climate
• Higher levels of obesity
• Younger clients seeking procedures
• Risk profile of invasive versus non-invasive treatments
• Sociological pressures including increased divorce rates
• Increase in trust and understanding of the products and treatments
• Increasing disposable income and procedure affordability over surgical alternatives
The accessibility to these services has seen a
significant shift in recent years, largely the
result of increased social acceptance
and affordability
Several important features distinguish non-invasive modalities from Plastic Surgery…
• Generally accepted that non-invasive treatments have a lower risk of complication
• Less costly and are temporary in nature
• The administration of injections into the skin, face and body is the largest product segment within
the industry and fastest growing
• Cosmetic minimally invasive treatments such as laser hair removal, microdermabrasion and
chemical peels as well as non-invasive body fat reduction treatments are generally much less
expensive than surgical options, with consumers undergoing them more frequently
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19TFG Investor Presentation March 2016
2016 & BEYONDKey focus areas
• Consolidate current clinic footprint
• Expand “Coolsculpting” within the Body Fat Reduction Modality
• Continue to develop and roll out TESSA
• Establish online store for Skin Solutions
• Expand geographic footprint in key markets
Financial Targets
• Cash Flow positive by June 2016
• Target revenue of $17m in FY17 within current clinic footprint
• Maintain group clinic operating margin at or above 25%
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20TFG Investor Presentation March 2016
INVESTMENT SUMMARY
• High growth industry with strong demographic and societal drivers
• Large market ~ $1 billion of revenue annually
• 42% of existing market directly addressable by TFG
Large & Growing
Market
Strong Brand &
Reputation
Compelling
Business Model
Competitive
Advantage
• Early track record of high revenue growth
• Material improvement in acquired clinic performance, evidencing
strong scale benefits
• Highly experienced board, operating and practitioner team
• Conservative capital structure, with zero term debt
• High degree of customer loyalty
• Portfolio of high quality and strategically located clinics
• Strong market position and highly regarded reputation
• Fragmented industry provides significant opportunity for large well
funded operator
• Strong cash generation with negative underlying working capital
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21TFG Investor Presentation March 2016
CONTACTS
Total Face Group Limited
ACN 169 177 833
Jo Hannah
CEO
Paul Fielding
Executive Chairman
+61 3 8547 3600
Level 4, 11 Bank Place,
Melbourne VIC 3000For
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